Xior Student Housing : Annual Communiqué – Publication of Annual Results 2021

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Annual Communiqué - Publication of Annual Results 2021

2021: Mission accomplished

2022-2023: New growth plan with minimum 10% EPS growth per year

2021: strong rental season reflected in strong financial results with portfolio growing to approx. EUR 2 billion

• EPRA earnings per share increases by 6% in line with expectations (EUR 1.80)
• Anticipated dividend of EUR 1.44 per share confirmed, a solid increase of 6% considering the 26% increase in number of shares
• Sound balance sheet with sufficient firepower for further expansion (debt ratio of 47.58%)
• Successful acquisition strategy with approx. MEUR 500 of new secured investments in a demonstrated crisis-proof real estate segment with a high stable occupancy of 98%
• Portfolio grows by 26% to EUR 1.97 billion

New growth plan 2022-2023with minimum 10% EPS growth per year

• Further increase of EPRA earnings per share by at least 10% in both 2022 and 2023
• Target EPRA earnings per share of EUR 2.00 in 2022 and EUR 2.20 in 2023
• Structural imbalance between supply and demand is expected to lead to rent increases above inflation (like-for-like growth). 2022-2023 academic year requests are already flooding in.
• Portfolio grows to approx. EUR 2.6 billion and more than 20,000 lettable units after completion of the committed pipeline

Acceleration of ESG efforts with focus on:

• People (development of new human capital strategy, successful employee survey and relaunch of corporate wellbeing programme "Xiorize")
• Planet (increase in green financing, setting CO2 reduction targets in accordance with SBTi and start of new energy manager)
• Process (digitalisation and completion of policy framework based on Values and Code of Conduct)

Christian Teunissen, CEO Xior:

"In 2021, Xior took another big step forward, and more importantly, was able to balance growth, sustainability and financial results. With this, we have laid the foundation for the next leap, with the announcement of a new, ambitious growth plan. This plan focuses on both accelerating our external growth and achieving our internal growth in the existing portfolio. ESG efforts within the #xiorfamily will also be shifted up a gear, building on the solid foundation set in 2021. "

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Key figures for FY 2021 and outlook

• EPRA earnings of EUR 1.80/share1, in line with expectations, a strong increase of 6% compared to 31/12/2020, considering the 26% increase in the number of shares.
• Proposed dividend of EUR 1.44/share, a 6% increase compared to 2020, payout ratio remains at the legal minimum of 80%.
• EPRA earnings - group share of EUR 1.80/share. The EPRA earnings - group share totals KEUR 44,379 in 2021, an increase of 33% compared to 2020.
• Net rental result rises up to KEUR 79,599 which is a 37% increase compared to KEUR 57,896 in 2020.
• EPRA NAV/share of EUR 38.63 compared to EUR 34.87 as at 31/12/2020.
• EPRA NTA/share of EUR 37.92 compared to EUR 33.99 as at 31/12/2020.
• Debt ratio of 47.58% compared to 54.18% as at 31/12/2020. Following the successful completion of the capital increases of MEUR 179 in March 2021 and of MEUR 116 in December 2021, the debt ratio fell again at year-end.
• Stable occupancy rate of 98%. The vast majority of rents have been collected for Q4, and the recovery rate (97.2%) is in line with the same period last year (96.8%).
• The property portfolio rose to MEUR 1,967 (an increase of 26% compared to 31/12/2020), with 13,755 lettable student units, thanks to Xior's successful acquisition strategy and a positive property revaluation.
• If all acquisitions and redevelopments in the committed pipeline are completed, the portfolio will increase to approx. EUR 2.6 billion with more than 20,000 lettable student units. After completion of the pipeline, the annualised rent will reach approx. MEUR 136.
• Structural imbalance between supply and demand is expected to lead to rent increases above inflation (like-for-like growth). In addition, utility costs are also protected against inflation.
• New growth plan for 2022-2023 in which Xior foresees growth in EPRA earnings per share of at least 10% per year when the current growth strategy is implemented.
• Outlook for 2022: EPRA earnings of EUR 2.00 per share and a dividend of EUR 1.60 per share.
• Outlook for 2023: EPRA earnings of EUR 2.20 per share and a dividend of EUR 1.76 per share.

IPO 2015

31/12/2016

31/12/2017

31/12/2018

31/12/2019

31/12/2020

31/12/2021

Full

committed

pipeline

# student

2,035

2,531

3,678 (excl.

5,505 (excl.

7,932

11,338

13,755

> 20,000

units

projects)

projects)

Fair value

(including

Approx.

Approx.

Approx.

Approx.

Approx.

Approx.

Approx.

> MEUR 2,500

non-

MEUR 200

MEUR 265

MEUR 493

MEUR 818

MEUR 1,191

MEUR 1,556

MEUR 1,967

student)

Buildings

(including

48

54

71 (incl.

87 (incl.

104 (incl.

118 (incl.

162 (incl.

162 (incl.

non-

projects)

projects)

projects)

projects)

projects)

projects)

student)

6 (BE)

8 (BE)

8 (BE)

8 (BE)

# cities

4 (BE)

5 (BE)

5 (BE)

5 (BE)

16 (NL)

17 (NL)

17 (NL)

17 (NL)

4 (NL)

5 (NL)

12 (NL)

16 (NL)

2 (ESP)

3 (ESP)

5 (ESP)

6 (ESP)

2 (PT)

2 (PT)

2 (PT)

2 (PT)

1 Figures per share are calculated based on the weighted average number of shares, unless stated otherwise.

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1. KEY FIGURES

	Consolidated income statement			In KEUR			31/12/2021			31/12/2020
Net rental result						79,599		57,896
Property result						77,351		58,457
Operating result before result on the portfolio				58,232		44,471
Financial result (excluding variations in the fair value of financial assets				-9,712		-7,611
and liabilities)
EPRA earnings	2					44,796		33,962
EPRA earnings - group share				44,379		33,299
Result on the portfolio (IAS 40)				32,761		-66,230
Revaluation of financial instruments (non-effective interest rate hedges)				12,323		-9,513
Deferred taxes						-7,567		9
Net result (IFRS)						82,313		-41,773
	Number of lettable student units						13,755			11,046
	Gross yields3							2021			2020
Belgium						5.11%		5.15%
The Netherlands						5.873%		5.89%
Spain						5.393%		5.83%
Portugal						6.50%		7.01%
Entire portfolio						5.51%		5.73%
	Consolidated balance sheet			In KEUR			31/12/2021			31/12/2020
Equity						1,003,852		659,503
Equity - group share				984,436		641,194
Fair value of the investment property4				1,967,056		1,555,779
Debt ratio (Act on Regulated Real Estate Companies)5				47.58%		54.18%

1. Xior Student Housing NV uses alternative performance measures (APMs) to measure and monitor its operational performance. The European Securities and Markets Authority (ESMA) has issued guidelines applicable since 3 July 2016 for the use and explanation of alternative performance measures. Chapter 10.8 of the Annual Financial Report 2020 includes the terms Xior regards as APMs.
   The APMs are marked with and accompanied by a definition, purpose and reconciliation (see XI and XII of this Annual Communiqué), as required by the ESMA guideline.
2. Calculated as estimated annual rent divided by the fair value and excluding projects in development. This concerns the valuation yields. This valuation yield is different from the announced acquisition yields, as it is based on fair value rather than acquisition value.
3. The fair value of the investment property is the investment value as determined by an independent property expert not including the transaction fees (see BE-REIT Association press release dated 10 November 2016). The fair value corresponds to the book value under IFRS.
4. Calculated in accordance with the Royal Decree of 13 July 2014 implementing the Act of 12 May 2014 on Regulated Real Estate Companies.

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	Key figures per share			in EUR			31/12/2021			31/12/2020
Number of shares				27,781,301		21,046,441
Weighted average number of shares6				24,644,517		19,560,351
EPRA earnings7 per share				1.82		1.74
EPRA earnings8 per share - group share				1.80		1.70
Result on the portfolio (IAS 40)				1.03		-3.39
Variations in the fair value of hedging instruments				0.49		-0.45
Net result per share (IFRS)9				3.34		-2.14
Share closing price				49.05		49.10
Net asset value per share (IFRS) (before dividend)				36.13		30.47
Dividend payout ratio (with relation to EPRA earnings)10				80%		80%
Proposed dividend per share11				1.44		1.36

		31/12/2021	31/12/2020
EPRA metrics	Definition	In KEUR	EUR per	In KEUR	EUR per
			share		share
EPRA earnings *	Underlying result derived from the strategic	44,796	1.82	33,962	1.74
	operating activities. This indicates the extent
	to which dividend payments are covered by
	earnings.
EPRA NAV *12	Net asset value (NAV) adjusted to take into	1,073,061	38.63	733,848	34.87
	account the fair value of the investment
	property and excluding certain elements that
	are not part of a financial model of long-term
	property investments.
EPRA NNNAV *14	EPRA NAV adjusted to take into account the	1,003,852	36.13	659,503	31.34
	fair value of (i) the assets and liabilities, (ii) the
	debts and (iii) the deferred taxes.
EPRA NRV *14	Assumes that entities never sell property and	1,165,918	41.97	811,047	38.54
	aims to represent the value
	needed to rebuild the property.
EPRA NTA *14	Assumes that entities buy and sell assets,	1,053,348	37.92	715,394	33.99
	causing
	certain levels of unavoidable deferred tax to
	materialise.
EPRA NDV *14	Represents the shareholder value in a 'sell out	976,852	38.63	648,221	30.80
	scenario', in which
	deferred tax, assets and liabilities and certain
	other adjustments are calculated to the full
	extent, after deduction of the resulting tax.

1. Based on the dividend entitlement of the shares.
2. Calculated based on the weighted average number of shares.
3. Calculated based on the weighted average number of shares.
4. Based on the number of shares.
5. The dividend payout ratio is calculated based on the consolidated result. The actual dividend distribution is based on the statutory earnings of Xior Student Housing NV.
6. Subject to approval by the Annual General Meeting.
7. Based on the number of shares issued.

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